How has divorce affected your life
The gain compensation for houses in sole ownership
Everything you need to know
If there is a divorce and you are the sole owner of a house or apartment, the question arises as to whether your spouse is entitled to the property. In the following, you will find out which conditions must be met, how the gain adjustment is calculated for houses in sole ownership and why a market value appraisal is a sensible investment.
Table of Contents
the essentials in brief
- The equalization of profits in a divorce regulates that financial situation between the two spouses, including real estate.
- Only the Asset growth between marriage and divorce crucial. For real estate that has a sole owner and was brought into the marriage, the most important thing is whether it was done during the marriage Expansion, modernization or renovation measures gave.
- To the Gain compensation To calculate for a wholly owned home, it is necessary to determine the increase in value of the property during the marriage. The rest is then halved.
- The market value appraisal of a sworn and publicly appointed real estate appraiser offers you a reliable information about how much your property is worth and is also admissible in court.
Gain compensation for sole ownership: Frequently asked questions & answers
In order to offset the gain of a house in the event of a divorce, it comes down to who owns the house.
Definition: what is house gain in the event of a divorce?
If spouse or registered partner no marriage or civil partnership agreement have concluded and it comes to a divorce or dissolution of the registered civil partnership, the so-called applies from a legal point of view Gain compensation: This means that the wealth that the couple has built up during the marriage is distributed in a financially balanced way. This may also include the assets that have increased in a property. The profit sharing is therefore about the Property relationships between the spouses. In this case, German family law speaks of a so-called Community of profits.
The aim of the profit sharing is that capitalthat multiplied during the marriage or registered civil partnership, to share fairly. There are fixed rules that must be adhered to for calculating the gain (i.e. the increased wealth).
By the way: If spouses are referred to in the following, this includes registered life partners. According to the Civil Partnership Act (LPartG), the equalization of profits also applies to registered civil partnerships.
Jurisprudence: What applies to profit sharing for houses that are solely owned?
If a house or apartment has only one owner, The property belongs exclusively to this person. That doesn't change in the event of a divorce. The question of whether that Wealth increased during marriage has, however, is relevant: If that is the case, from a legal point of view one speaks of one Gain.
Houses that are solely owned are also subject to this if one of the following conditions applies:
- The house was built during their marriage Bought.
- The house was built during their marriage expanded or modernized. In this case it is irrelevant whether the house was bought by the owner before the marriage.
By the way: Who paid what costs is not taken into account when calculating the gain.
If there is one Increase in value If the property is solely owned (which can be the case, especially in the case of longer marriages due to inflation), is a fact Gain in front. In the event of a divorce, this is subject to the equalization of profits: This means that the sum will be halved and one of the two halves is due to the spouse, which one Non-owner is.
Ownership: Who will own the house in the event of a divorce?
The owner of a house is always the person who lives in it Land register entry is noted as the owner. This also applies to divorce:
- Is only a person in the land register noted as the owner, she owns the house in the event of the divorce as so-called sole ownership. That means: the sole owner can keep the house in the event of a divorce.
- are both partners as owners registered, the house belongs to both people.
Tip: If you do not know who is registered as the owner in the land register, you will need an extract from the land register. You can find out how this works and what costs you will have to pay in our guide "Requesting a land register excerpt: This is how it works".
Exceptions: Can you also avoid the equalization of profits for houses in sole ownership?
Basically, when asked about the Ownership no exceptions. You can only avoid the gain compensation for a house in sole ownership if
- You one Marriage settlement completed
- or there was no gain in the house during the marriage. That means: you have no modernization or expansion measures made that increase the value of the house.
Basically, if you own a house or apartment, the property in question cannot simply be taken away. Nevertheless, a court can give the non-owner the Allow use of the house or apartment. However, this is only possible if the non-owner can prove that he or she cannot find affordable accommodation for himself or the children being looked after.
In such a case, the Ownership structure still unchanged, there is only permission for the non-owner to use the house or apartment.
Measures to increase the value of a property during the marriage count as gain. This also applies to houses in sole ownership.
Ownership before marriage: what applies to profit sharing for houses brought into the marriage?
If you were the sole owner of a house or apartment before the marriage, real estate assets can still be Gain compensation subject. There are two scenariosin which this is possible:
- The house was bought, (expanded) or renewed during the marriage: In this case, the wealth in the marriage has increased. That is why one speaks of the so-called asset compensation, which is then due.
- The house was bought before the marriage, but then expanded or modernized: In this case, too, the property has increased in the form of the house value and is therefore subject to the gain compensation in the event of a divorce.
Inheritance & donation: Does the gain adjustment also apply to inherited or gifted houses that are solely owned?
Yes, inherited or gifted houses are also subject to profit sharing, but only if they are expanded or modernized during the marriage and their market value (market value) has increased.
Statute of limitations: Can the gain compensation for houses become statute-barred during the divorce?
Yes he can. Although the equalization of gains does not have to be fully clarified by the time the divorce is legally binding, the claim becomes statute-barred three years after the final divorce.
Special regulation: GDR law on the equalization of profits for houses that were brought into marriage
If you got married as a married couple in the former GDR and are filing for divorce today, apply to you Requirements of the Family Code of the GDR (FGB for short) on asset equalization (Sections 39–40 FGB). In addition, Key date for the initial assets not the day of the wedding, but the 3rd October 1990, the day of reunification.
Other special features in the case of a divorce in which the marriage took place according to GDR law, the following are:
- Different sized proportions:
The proportions of the equalization of profits do not have to be the same, if the application is justified, the proportions can be different. This can be the case if joint dependent children live with one of the spouses, or if one spouse has not made an appropriate contribution to the creation of common property and assets through neither employment nor household work.
- One spouse can receive all of the property:
In special cases, the court can award the entire joint property to a single spouse. If the period of one year for the division of assets expires, one spouse is not entitled to any gain compensation if the other spouse is sole owner.
- Granting Additional Shares:
The court may award a spouse additional shares. This applies if one spouse has made a significant contribution to the fact that the other spouse has received or increased assets. Then the court may award him or her an additional portion in addition to the portion to which he or she is entitled. This can extend to half of the other person's assets. However, once the period of one year after the end of the marriage has expired, the claim is no longer valid and cannot be transferred.
- Spouse's right to inheritance:
If one of the spouses dies, which leads to the end of the marriage, the living spouse is entitled to his inheritance. However, this is not hereditary.
If the procedure for the equalization of profits in the divorce has not yet been completed, you, as the sole owner, also need the consent of your spouse to sell your property.
Selling: Can I Sell a Sole-Owned Home During the Divorce?
You are also allowed to do so if you are the sole owner of a house or apartment do not sell the property without the consent of the spouse until a legal divorce is reached. According to the German Civil Code (§ 1365 BGB), the respective spouse must expressly consent to the sale of an apartment or house.
You can only own the house or apartment as sole owner after the divorce has been finalized and legally valid sell without consent - provided that Procedure for the profit sharing completed. If this is not the case, you still need the consent of the previous spouse.
Debt: What About A Sole-Owned Home Loan During Divorce?
If you are the sole home owner, you are required to do so Repay home loan alone. This also applies if you and your spouse are both registered as debtors in the loan agreement.
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Calculation: How do you calculate the profit compensation for a house in sole ownership?
If you are the sole owner of a house or apartment and the property is still subject to profit sharing, there is fixed guidelinesthat must be adhered to. These are set out in the German Civil Code (Sections 1374–1378 BGB). In the following you will find out what you have to consider here.
What are initial wealth and final wealth?
The starting and ending wealth are two values that can be used to determine how much the property will gain during the divorce:
- Initial assets: The initial wealth is the value that the house had at the time of marriage.
- Final assets: The value of the house at the time of the divorce is called final wealth.
How do courts proceed when calculating the profit equalization for wholly owned houses?
Basically, dishes compare the respective capital both spouses to each other. In the case of both spouses, it is important to determine how strong the assets are during the marriage for both spouses individually increased is. Therefore, the courts determine the initial and final assets of both parties.
In the case of sole ownership or an inherited or gifted property that has only one sole owner, the court checks how high the value was at the time of marriage or at the time of acquisition or receipt (so-called Initial fortune). The court then deducts this amount from the value of the house or apartment at the time of the divorce (so-called Final fortune). If the two values are not identical, the difference is halved. The result is the value to which the non-owner of the property is entitled.
What are the valid reference dates for determining starting and ending assets?
In order to be able to determine the starting and ending assets for the gain adjustment, the reference dates must be taken into account. These are exact dates. The following rules apply here:
- The Key date for the initial assets is the day of marriage.
- The Key date for the final assets is the date on which the application for divorce was filed with the spouse, not the date of the legal divorce. This has been in effect since September 1, 2009 (§ 1384 BGB).
How do you calculate the profit equalization?
To calculate the profit for a house or apartment, the following formula is used:
(Final wealth - initial wealth) ÷ 2 = gain equalization
Example of the calculation of the profit equalization
Lukas and Bettina J. are getting a divorce. Lukas J. is registered in the land register as the sole owner of the house in which they both lived. During the marriage, you had modernization measures carried out on the house, which increased the value of the original house value:
- Initial property of the house: € 700,000
- Final property of the house: € 850,000
In order to now calculate which monetary claim Bettina J. is entitled to, the initial assets must be deducted from the final assets in order to determine the amount of the increase in value of the house:
850.000 € – 700.000 € = 150.000 €
This difference must now be divided by two to determine the proportions which two divorce partners are entitled to:
150.000 € ÷ 2 = 75.000 €
So Bettina J. from Lukas J. Monetary claim of € 75,000 in the context of the equalization of profits for the house whose sole owner is Lukas J.
Tip for the divorce with houses in sole ownership: Have a market value appraisal drawn up
The value of your fully owned property is crucial in a divorce. This applies to both the initial and the final wealth. To a reliable and precise information To obtain this, a court-approved market value appraisal is advisable: Here, a real estate expert determines how high the so-called market value (the market value) of your house or apartment is in sole ownership.
In particular with legal proceedings such as a divorce and the associated profit sharing, you should prepare optimally. A precise and reliable determination of the market value of your property is a sensible step for this. You can either commission the procedure together with your spouse or you can do one alone certified and publicly appointed real estate appraisers entrust it. This creates a legally sound basis for the question of the profit equalization for you, with which the Reduce profit payment to your spouse leaves.
Important: Under no circumstances should you hire a freelance real estate appraiser or broker to draw up an appraisal for your property. Because such reports are not admissible in court!
By the way: Our real estate appraisers are multiple certified professionals, the throughout Germany Evaluate real estate. We basically go by the Four-eyes principle in front.This means that we always have the calculations checked by another expert in order to provide you with a reliable and solid result. We also take short term orders opposite.
If you have any questions, we will be happy to support you with a free and non-binding initial consultation: Simply use our contact form or select the Call 0800 - 90 90 282. We look forward to you!
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